The financial statements of Johannsen Inc. are presented here: Additional information: 1. Profit available to common shareholders

Question:

The financial statements of Johannsen Inc. are presented here:

The financial statements of Johannsen Inc. are presented here:
Additional information:
1.
The financial statements of Johannsen Inc. are presented here:
Additional information:
1.

Additional information:
1. Profit available to common shareholders was $160,000.
2. The weighted average number of shares was 40,000.
3. The share price at December 31 was $35.
Instructions
(a) Calculate the following values and ratios for 2012. We provide the results for 2011 for comparative purposes.
1. Working capital (2011: $260,500)
2. Current ratio (2011: 1.6:1)
3. Debt to total assets (2011: 31.5%)
4. Earnings per share (2011: $3.15)
5. Price-earnings ratio (2011: 7.5 times)
(b) Using the information in part (a), discuss the changes in liquidity, solvency, and profitability between 2011 and 2012.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118024492

5th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

Question Posted: